AR HB1851

Amends Arkansas Code § 26-52-401(3) to update terminology from "lunch rooms" to "dining facilities" for sales tax exemptions on food sold in public, common, high school, or college cafeterias

Maintains the existing sales tax exemption for food, food ingredients, and prepared food sold in school and college dining facilities operated primarily for teachers and pupils, not for the public, and not for profit

Clarifies that school and college cafeterias using for-profit third-party contractors for services or management still qualify for the sales tax exemption, as long as the facility itself is not operated for profit

Updates the original 1941 exemption to align with current school food service and management practices where third-party vendors commonly provide cafeteria services

Effective on the first day of the calendar quarter following the act's effective date; approved April 16, 2025